Jio Platforms (JPL), the telecom, digital and technology arm of Mukesh Ambani-led Reliance Industries, has received approval from the Securities and Exchange Board of India (Sebi) to start its initial public offering, information on the regulator's website showed.
Bankers estimate the IPO could raise around $3.5-4 billion, or approximately ₹37,000 crore, which would make it potentially the largest public issue in India, dwarfing the proposed listing by the National Stock Exchange (NSE).
Jio Platforms had submitted its draft IPO papers to Sebi in June and received the regulator's final observations on August 28, according to an update on Sebi's website. A Reliance statement to the two exchanges also confirmed the news.
Receiving Sebi's final observations marks a key milestone in the IPO process, allowing the company to move ahead with preparations for the public issue, subject to applicable regulatory requirements. As per the Draft Red Herring Prospectus (DRHP), Jio Platforms plans to issue up to 270 million fresh equity shares. The fresh issue will represent around 2.9% of the company's total equity capital after the IPO.
There is no offer for sale (OFS) component in the proposed IPO.
The Jio Platforms offering will be the first IPO from the Reliance Industries group in nearly two decades, following the listing of Reliance Petroleum in 2006. According to the IPO documents, a portion of the proceeds will be used to prepay up to Rs 27,500 crore of loans at Reliance Jio Infocomm Ltd (RJIL).
